Wednesday, June 15, 2022

Can Anyone In The Biden Administration Do Math Or Economics?

Biden has announced that the U.S. to sell up to 45 mln bbls oil from reserve as part of historic release (Reuters).

Here's why it's not going to be more than a blip in gas prices and is just plain dumb.

Prior to Covid, the U.S. field production of crude oil, wast 13 million barrels per day of crude oil before the pandemic, we are now only at 11.655 million barrels per day.

US production is now short about 1.3 million barrels per day, every day.  That means we're short about 39 million barrels per month in US production alone, so the 45 million barrel release doesn't do much at all for the worldwide market in oil, much less our own domestic market, and it just covers the shortfall in production for a month and a few days -- without addressing all the other demand factors involved nor the fact that demand isn't going to drop after that month.

The Biden administration, instead of flashily selling off a reserve meant for a national emergency, and instead of blocking oil and gas development at every turn in the US, should instead be encouraging production to ensure an actual longer term easing of prices and reduced reliance on foreign oil.

Unfortunately that goes against their greenie and Democrat policies and beliefs that oil production is bad and higher prices are a good thing, so they're not going to take steps that might actually improve the situation.

But, hey, aren't you glad there's no more mean tweets every time you fill your tank?


B said...

Plus demand has grown from pre-pandemic levels.

ccm2361 said...

Oh yes, no more mean tweets. I give thanks everday for no mean tweets.
Kidding of course, give me the mean tweets & $2 gas any day.

Biden & those pulling his strings have done more damage to this country in 1 years than Obama did in 8 years.

Aaron said...

B: Yes, yes it has, and the best Biden can do is deflect and claim the pil industry is to blame.

ccm2361: That they have and when you think of this as Obama's third term its just a continuation of the damage with many of the same folks making the same damn ideologically-driven mistakes.

MrGarabaldi said...

Hey Aaron;

This is scary stuff, the oil is supposed to be there for national war and other things....not Xiden trying to bail the donks out before the midterm. There will come a time when we will need that oil and we ain't gonna have it because that clown squandered it for political points.

Aaron said...

MrGarabaldi : Exactly so, and the worst part is that 45 million barrel release isn't even going to cause more than a very temporary dip in the price of gas, if at all.